Behind the Money cover image

Behind the Money

The controversy around share buybacks

Aug 16, 2023
Share buybacks have become a highly debated topic in financial circles. The podcast explores the reasons behind their popularity, the controversy surrounding their use, and the potential benefits of new regulation. It also discusses the recent decline in share buybacks and the ongoing debate over prioritizing shareholder value versus long-term growth.
18:20

Podcast summary created with Snipd AI

Quick takeaways

  • Share buybacks have become a controversial practice in corporate governance, sparking debates about the purpose of a company and the nature of capitalism.
  • The recent surge in popularity of share buybacks can be attributed to low interest rates, activist investors seeking quick returns, and highly profitable tech companies with excess cash.

Deep dives

The Controversy of Share Buybacks

Share buybacks have become a controversial practice in corporate governance. Companies buy their own shares to return access cash to shareholders. This practice has exploded in popularity in recent years, tripling globally in a decade. The main debate revolves around whether share buybacks are a good use of corporate money, benefiting investors now but potentially robbing future growth. This debate reflects a larger question about the purpose of a company and the nature of capitalism.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode